I was buying DDMs for some months. I was expecting a slow (over years) recovery. This rally is completely out of touch with the weak fundamentals. Just sold my DDMs at $33.01 A 21% percent profit. Now I'll wait a couple months to see if the market goes down a bit. Then I'll buy some DIAs and sell covered calls on it for some years to go. If the market goes down, well below 7000 for the Dow, I MIGHT buy DIAs on margin to sell covered calls on it.
Just sold a covered call DIA $90.65 .DAVHL (DIA Aug 90 Call), received $2.25 for it. Now I just sold a few covered calls. I'll enter my full covered call position slowly, taking some months. (dividing trades over some months).
On 8/21 the options expired. DIA went up, so the Calls I sold got assigned (at $90). The net profit was $1.60 per share, 1.76% in less than a month, not bad at all.
Today, 8/28/09 sold another covered calls. As the market rallied too much on too short time, without enough support from the fundamentals, I sold slightly In-The-Money options, in case the market goes down. Purchased DIA shares For the .DAVIP (DIA Sep 94 Call) received a premium of $2.54 (altough some of it it's intrinsic value being an ITM option). These options expire on 9/18/2009, stay tuned.